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Fair Value (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Summary of Financial Assets Measured at Fair Value on Recurring Basis

The following tables present the balances of financial assets measured at fair value on a recurring basis as of the dates stated.

		March 31, 2021
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Securities available for sale
State and municipals		$	31,476			$	—			$	31,476			$	—
U.S. Treasury and agencies			53,726				—				53,726				—
Mortgage backed securities			157,128				—				157,128				—
Corporate bonds			36,404				—				36,404				—
Total securities available for sale		$	278,734			$	—			$	278,734			$	—
Other assets
Rabbi trust assets		$	1,130			$	1,130			$	—			$	—
Mortgage derivative asset			5,949				—				5,949				—
Interest rate swap asset			7,248				—				7,248				—
Other liabilities
Mortgage derivative liability		$	—			$	—			$	—			$	—
Interest rate swap liability			1,593				—				1,593				—

		December 31, 2020
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Securities available for sale
State and municipals		$	14,259			$	—			$	14,259			$	—
U.S. Treasury and agencies			2,409				—				2,409				—
Mortgage backed securities			72,635				—				72,635				—
Corporate bonds			20,172				—				20,172				—
Total securities available for sale		$	109,475			$	—			$	109,475			$	—
Other assets
Mortgage derivative asset		$	5,293			$	—			$	5,293			$	—
Interest rate swap asset			1,716				—				1,716				—
Other liabilities
Mortgage derivative liability		$	1,569			$	—			$	1,569			$	—
Interest rate swap liability			2,735				—				2,735				—

Summary of Change in MSR Assets Using Level 3 Inputs

The following tables present the change in MSR assets using Level 3 inputs as of and for the periods stated.

(Dollars in thousands)		MSRs
Balance, December 31, 2020		$	7,084
Acquired in Bay Banks Merger			987
Additions			3,935
Write-offs			(122	)
Amortization			(452	)
Impairments			(1	)
Fair value adjustments			2,397
Balance, March 31, 2021 - fair value		$	13,828
Balance, March 31, 2021 - amortized cost		$	11,442

(Dollars in thousands)		MSRs
Balance, December 31, 2019		$	—
Additions			7,539
Write-offs			(61	)
Amortization			(391	)
Impairments			(3	)
Fair value adjustments			207
Balance, December 31, 2020 - fair value		$	7,291
Balance, December 31, 2020 - amortized cost		$	7,084

Summary of Assets Measured at Fair Value

The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated.

		March 31, 2021
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Impaired loans, net		$	5,692			$	—			$	—			$	5,692
Loans held for sale			122,453				—				122,453				—
OREO			594				—				—				594

		December 31, 2020
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Impaired loans, net		$	2,187			$	—			$	—			$	2,187
Loans held for sale			148,209				—				148,209				—

Summary of Quantitative Information about Level 3 Fair Value Measurements

The following tables present quantitative information about Level 3 fair value measurements as of the dates stated.

Balance as of

Valuation

Unobservable

Weighted

(Dollars in thousands)

March 31, 2021

Technique

Input

Average

Impaired loans, net

$

5,692

Discounted appraised value

Selling costs

10

%

OREO

594

Discounted appraised value

Selling costs

7

%

(Dollars in thousands)		December 31, 2020				Technique		Input		Average
Impaired loans, net		$	2,097			Discounted appraised value		Selling costs			10	%
			90			Discounted cash flows		Discount rate			6	%

Summary of Estimated Fair Values and Related Carrying Amounts and Valuation Level of Financial Instruments

The following tables present the estimated fair values, related carrying amounts, and valuation level of the Company’s financial instruments as of the dates stated.

		Carrying Value as of				Fair Value as of				Fair Value Measurements as of March 31, 2021
(Dollars in thousands)		March 31, 2021				March 31, 2021				Level 1				Level 2				Level 3
Financial Assets
Cash and due from banks		$	273,540			$	273,540			$	273,540			$	—			$	—
Federal funds sold			5,238				5,238				5,238				—				—
Certificates of deposit			1,018				1,018				—				1,018				—
Securities available for sale			278,734				278,734				—				278,734				—
Restricted equity and other investments			14,821				14,821				—				14,821				—
PPP loans receivable, net			597,626				597,626				—				—				597,626
Loans held for investment, net			1,693,514				1,713,201				—				—				1,713,201
Accrued interest receivable			10,507				10,507				—				10,507				—
Bank owned life insurance			36,164				36,164				—				36,164				—
Financial Liabilities
Noninterest-bearing demand deposits		$	617,102			$	617,102			$	617,102			$	—			$	—
Interest-bearing demand and money market deposits			751,390				751,390				—				751,390				—
Savings deposits			159,455				159,455				—				159,455				—
Time deposits			612,171				618,166				—				—				618,166
Securities sold under repurchase agreements			1,198				1,198				1,198				—				—
FHLB borrowings			183,122				182,890				—				182,890				—
FRB borrowings			509,667				509,667				—				509,667				—
Subordinated notes, net			54,588				56,342				—				—				56,342

		Carrying Value as of				Fair Value as of				Fair Value Measurements as of December 31, 2020
(Dollars in thousands)		December 31, 2020				December 31, 2020				Level 1				Level 2				Level 3
Financial Assets
Cash and due from banks		$	117,945			$	117,945			$	117,945			$	—			$	—
Federal funds sold			775				775				775				—				—
Securities available for sale			109,475				109,475				—				109,475				—
Restricted equity investments			11,173				11,173				—				11,173				—
PPP loans receivable, net			288,533				288,533				—				—				288,533
Loans held for investment, net			719,056				720,396				—				—				720,396
Accrued interest receivable			5,428				5,428				—				5,428				—
Bank owned life insurance			15,724				15,724				—				15,724				—
Financial Liabilities
Noninterest-bearing demand deposits		$	333,051			$	333,051			$	333,051			$	—			$	—
Interest-bearing demand and money market deposits			282,263				282,263				—				282,263
Savings deposits			78,352				78,352				—				78,352				—
Time deposits			251,443				257,647				—				—				257,647
FHLB borrowings			115,000				114,983				—				114,983				—
FRB borrowings			281,650				281,650				—				281,650				—
Subordinated notes, net			24,506				25,830				—				—				25,830

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

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-Publisher FASB
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-Topic 820
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-Section 50
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Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2.

+ References

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

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- Definition

Tabular disclosure of activity in the balance of servicing assets subsequently measured at amortized cost. Includes, but is not limited to, beginning and ending balances, additions, disposals, and amortization.

+ References

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